Near term outlook for Shell New Zealand

SHELL NEW ZEALAND
Media Statement
For Immediate Release
26 June 2003

Near term outlook for Shell New Zealand

Shell New Zealand’s significant investment in New Zealand’s oil and gas assets has resulted in satisfactory returns during 2002, but there are significant challenges for the future.

Shell Chairman, Dr. Lloyd Taylor, said today “The decline in Maui oil and gas production, the strengthening New Zealand dollar and the probability of softening oil prices in second half 2003, mean that for the foreseeable future the performance of the Exploration and Production (EP) business is likely to be less than that achieved in 2002.

“The Oil Products (OP) business also faces the emergence of further competition, that of supermarkets entering into gasoline retailing, which may see changes in the way New Zealanders can buy their petrol. Shell will respond positively to its customers choices in this area and the resultant competitive pressures.”

The 2002 results announcement provides the opportunity to clarify pending management changes. At year-end, having completed the integration of Fletcher Challenge Energy into the business Dr. Taylor will leave Shell to pursue a new career path.

“Personally, it is very satisfying to be able to leave the business in such strong financial and operational shape, well positioned to meet the competitive challenges that lie ahead,” said Dr. Taylor.

Changes in Shell New Zealand EP management structure will be announced in the coming months and are linked to progress in the global restructuring of Shell’s EP business into five regional businesses.

Under this restructure, the New Zealand EP business will become a component of an integrated Asia-Pacific business unit. This parallels the changes, which took place in the OP business three years ago, a result of which is that the New Zealand OP business is now a component of Shell’s East Zone Oil Products business.

ENDS

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